Balance Sheet terms
| Term | Definition |
|---|---|
| Intangible fixed assets | Assets that are not physical in nature e.g. goodwill, brand, intellectual property, patents, trademarks and copyrights |
| Tangible fixed assets | Physical and measurable assets e.g Property, Plants and Equipment (PPE) |
| Other fixed assets | Other assets not categorised as intangibles or tangibles |
| Fixed assets | Total fixed assets used in the company’s operation to generate income to be converted greater than 12 months (includes intangibles, tangible and other fixed assets) |
| Stock & W.I.P. | The merchandise or raw materials on hand |
| Trade debtors | Unpaid amount on goods or products sold |
| Other debtors | Unpaid amount not relating to sales of goods or products |
| Group balances | Money owed by other members or subsidiaries in the group |
| Cash and equivalent | Cash is the most liquid assets and includes currency, coins etc |
| Current assets | Total assets owned by the company that are expected to be converted within a year (includes stock, trade and other debtors, group balances and cash & cash equivalent) |
| Total assets | Refers to the total amount of assets owned by a company (Current assets plus Fixed assets) |
| Trade creditors | The money the company owes its suppliers for goods and services |
| Accruals & def. Income | Accruals are revenues earned or expenses incurred while deferred income are advance payments a company receives for products or services that are to be delivered or performed in the future |
| Other creditors | Money owed to others (not including amount owed to group companies or suppliers of goods and services) |
| Group balances | Money owed to the other subsidiaries or companies within the same group structure ( mostly owed to the parent company) typically payable within 12 months of the balance sheet date |
| Short term debt | Company’s obligation owed to banks or financial institutions that are expected to be paid within 12 months |
| Current liabilities | The total financial obligations that a company is expecting to pay off within 12 months (includes trade creditors, accruals & def. income, other creditors, group balances and short term debt) |
| Working capital | The capital a business uses in its day to day operations. It is calculated by subtracting the current liabilities from the current assets. |
| Assets less current liab. | Total assets minus current liabilities |
| Long term debt | Company’s obligation owed to banks or financial institutions that will not become due within one year of the balance sheet date |
| Group balances | Money owed to the other subsidiaries or companies within the same group structure (mostly owed to the parent company) typically payable in more than 12 months. |
| Provisions & other creditors > 1yr | Money set aside to cover a future liability |
| Long term liabilities | The total financial obligations that a company is not expecting to pay off within the next 12 months (includes long term debt, group balances and provisions & other creditors > 1 year) |
| Minority interest | Also known as Non-controlling interest (NCI). It is the ownership in the subsidiary company not owned by the holding company |
| Shareholders' funds | The owner’s claim after subtracting total liabilities from total assets |
| Net worth | The owner’s claim after subtracting total liabilities from total assets |